Volatility Index

The VIX index, or CBOE Volatility Index, measures how much investors expect the stock market to move in the near future. It is calculated using the prices of options on the S&P 500 index, which helps estimate future market swings. A high VIX suggests that investors expect big changes in the market, often indicating fear or uncertainty. Investors use the VIX to understand market sentiment and to make decisions about buying or selling investments based on expected market stability or instability.